In the dynamic environment of industrial production, time and resource allocation is becoming an increasingly scarce and valuable asset. For large industrial organisations today, the process of selecting and prioritising projects has become a complex challenge. Rigorous evaluation and prioritisation of projects is a fundamental step that can significantly impact the success of industrial manufacturers. During this period, it is vital to clarify project catalysts, success determinants, evaluation criteria, project appraisal and a good project management methodology to navigate this challenging terrain and the tools to be used during implementation.

Regardless of the size or organisational structure of a manufacturing company, selecting projects in silos, with department-centric approaches and often neglecting wider strategic implications, makes it difficult to achieve the desired level of project objectives. This approach brings with it significant risks such as resource conflicts, conflicting timelines and negative interdepartmental influences.

In practice, each department or unit often argues for the priority of its own projects. The reality, however, is that without unlimited resources, unlimited time and unwavering clarity, it is not possible to consider all projects as high priority. Fortunately, there are strategies to facilitate the systematic evaluation and prioritisation of projects.

It is imperative that programme, portfolio and project managers in industrial manufacturing involve themselves in planning at a strategic level. Project leaders must engage in deep discussions with the executive team to gain a comprehensive grasp of the firm's goals, timing and overarching vision. No detail is too small. This may require multiple strategic planning meetings, similar to a roadmap, marking the desired destination and providing key landmarks along the journey to confirm alignment with the intended direction.

In industrial production, projects can be initiated by various driving forces, including but not limited to the following main topics:

Competitive Advantage: Innovations made to provide competitive advantage.

Cost Reduction and Financial Gain: Increasing profitability.

Operational Efficiency and Process Improvement: Streamlining operations.

Compliance and Legal Obligations: Compliance with regulatory requirements.

Improved Quality: Improvement of product quality.

Risk Mitigation: Addressing potential challenges.

Expansion and Business Opportunities: Pioneering new markets.

An instrumental aspect, a methodology, requires working with management to understand the impact and desired outcomes of proposed projects. This helps to gain a more comprehensive understanding of the strategic value, immediate or long-term results and the expected benefits of each project. In addition, the risks associated with delaying certain projects should be carefully weighed. For example, some projects may offer significant strategic value and numerous benefits, but may not be prioritised over projects arising from legal, tax or regulatory imperatives.

Complementary considerations include return on investment (ROI), budget constraints, resource availability and timelines. Bindings and constraints also require close attention. Budgets and programmes are generally within certain limits (they are not infinite), making it impossible to accommodate all project ideas. In this case some projects may have to be postponed. In particular, postponement may be necessary when the project is dependent on the successful outcome of other initiatives or when external factors beyond the control of the organisation may hinder the achievements of the project concerned.

Prioritisation of projects in industrial production is a crucial step in understanding that not all projects are of equal importance. After gathering information from management and other relevant sources, the next step is to select the most appropriate methods and tools to evaluate, prioritise, identify and rank each project against the established evaluation criteria. It is essential to ensure the appropriateness and effectiveness of these methods in assessing each criterion in each project, thus ensuring a precise assessment of organisation-wide priorities.

Following a rigorous evaluation and prioritisation process, but before initiating any project, it is essential to reconvene with the management team to review the project evaluation criteria, results, alignment with company-wide strategic objectives and other findings. This approach guarantees a common understanding among all stakeholders, provides an additional avenue for input and reaffirms alignment with the findings.

In the dynamic world of industrial production, strategic evaluation and prioritisation of projects is crucial. This ensures alignment of resources with the corporate mission, enhances competitiveness and fulfils regulatory obligations. By adopting a comprehensive and strategic approach, industrial manufacturers can expertly navigate the intricacies of project selection and contribute to the lasting prosperity of their organisations.